Politics
Capital Flight and the Politics of Betrayal: When Leaders Stop Believing in Their Own Economy
Capital Flight and the Politics of Betrayal: When Leaders Stop Believing in Their Own Economy
BY BLAISE UDUNZE
Nigeria’s economy is bleeding, not from the absence of money, but from the silent, systemic outflow of capital that should be building industries, creating jobs, and stimulating innovation. Instead, wealth is fleeing into the vaults of local banks, offshore accounts, and speculative government instruments that promise easy returns but deliver little to the real economy.
This quiet drain known as capital flight has become one of Nigeria’s most understated yet devastating economic tragedies. It reflects not only a lack of investor confidence but also the failure of the banking and financial ecosystem to function as a true engine of growth. The role of banks in any healthy economy is to mobilize deposits, lend to productive sectors, and finance businesses that create value. Yet, in Nigeria, this cycle has broken down.
The country’s major banks, flush with liquidity, increasingly prefer to invest in risk-free government securities rather than lend to manufacturers, farmers, or entrepreneurs. The ease of earning double-digit interest from government bonds has turned banks into passive rent collectors rather than drivers of development. This behavior represents a form of internal capital flight with money technically within the system but practically locked away from the economy’s productive veins.
Beyond domestic hoarding, Nigeria faces a more pernicious form of external capital flight. Each year, billions of dollars exit the country through legal and illicit channels, draining investment, depleting foreign reserves, and eroding confidence in the nation’s economic future. Government and independent estimates suggest that Nigeria loses between $17 billion and $18 billion annually through illicit financial flows (IFFs), roughly 20 percent of the $88.6 billion that Africa collectively loses each year. That amount could have built schools, hospitals, and industries capable of employing millions.
The story of capital flight from Nigeria is not merely an economic tragedy; it is a moral one, the tale of a nation betrayed by its own custodians and courted by foreign accomplices who profit from its dysfunction.
Nigeria’s political elite have long mastered the art of wealth extraction. Through inflated contracts, misappropriated public funds, and dubious foreign investments, billions leave the country yearly. Yet, for many politicians, local investment is a risk they refuse to take. Their mansions rise in Dubai, London, and New York while their home constituencies languish in neglect. From shell companies in the British Virgin Islands to luxury real estate in the UAE, Nigerian politicians have woven a global web of concealed wealth shielded by secrecy jurisdictions and weak local enforcement. The irony is stark, as those who control Nigeria’s wealth have no faith in the economy they manage. Their lack of confidence in their own governance is perhaps the strongest indictment of their rule.
The aristocracy and business elite are not blameless. Nigeria’s high society, traditional rulers, business moguls, and political patrons have continued to move funds abroad under the guise of “diversification” or “investment security.” In reality, it is the same cycle of extraction and expatriation, where profits earned from domestic monopolies or state patronage are rarely reinvested at home. Instead, they are laundered into foreign banks, luxury assets, and offshore trusts. This unrestrained financial migration deprives the nation of growth capital and erodes public confidence, reinforcing a psychological colonization with the belief that nothing of value can thrive in Nigeria.
The problem, however, is not purely internal. Foreign corporations and their local collaborators play a significant role through aggressive tax avoidance and profit repatriation schemes. By exploiting loopholes in Nigeria’s weak fiscal systems, multinationals shift profits to low-tax jurisdictions, a process known as transfer pricing, which is draining billions from the economy each year. To make matters worse, global consulting and legal firms help structure these outflows, acting as enablers of corruption while hiding behind the veil of legality.
Capital flight thrives where institutions are weak. Agencies such as the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC) operate under immense political pressure. Investigations into politically exposed persons are often selective, and prosecutions drag endlessly. Meanwhile, banks (both local and foreign) play the silent role of facilitators, processing questionable transactions with minimal scrutiny. The result is a perfect ecosystem for looting by powerful politicians, complicit banks, pliant regulators, and eager foreign beneficiaries.
The effects are devastating. Capital flight undermines foreign exchange stability, weakens the naira, and starves industries of investment. When billions are left unchecked, the government resorts to borrowing, increasing national debt and mortgaging the country’s future. Nigeria’s public debt now stands at N149.39 trillion, with debt servicing consuming over 70 percent of government revenue. Inflation remains stubbornly high at 20.12 percent as of August 2025, while food inflation stands at 21.87 percent. Unemployment, officially at 5 percent, is far worse in reality, with underemployment and informal work masking widespread joblessness.
One overlooked driver of this crisis is Nigeria’s weak respect for property rights, which is the very foundation of investor confidence. In September 2025, the Lagos State government demolished over 19 buildings in the Trade Fair Complex, Ojo, citing permit violations. But beyond regulatory enforcement, the event exposed a deeper issue: inconsistent governance, opaque processes, and disregard for ownership that fuels distrust and drives capital offshore. When investors are uncertain that their assets are safe from arbitrary government action, they simply take their money elsewhere.
Multiple taxation, inconsistent policies, and weak monitoring of illicit flows further complicate the picture. Businesses face overlapping levies from different tiers of government, pushing many to conceal income or move operations abroad. Civil society estimates that over $18 billion is lost annually through illicit flows. This is a drain that robs Nigeria of the fiscal capacity to fund schools, hospitals, and roads.
Ultimately, the story of capital flight is one of moral and institutional decay. It reveals a political class that preaches patriotism while stashing wealth abroad, a banking system that serves itself rather than the economy, and a foreign financial order that profits from Nigeria’s dysfunction.
Reversing this pattern requires a national reorientation, one that goes beyond slogans to enforce accountability and rebuild trust. Nigeria must strengthen asset recovery frameworks, enforce beneficial ownership registries, and enhance cooperation with countries that host stolen wealth. Western nations, too, must shut down the safe havens that shelter looted funds; they cannot condemn corruption abroad while their financial systems profit from it.
More importantly, Nigeria’s leaders must recognize a simple truth that no nation develops by exporting its capital and importing its luxuries. Development is sustained by faith, the faith of a people who believe enough in their land to invest in it.
Capital flight is not merely an economic statistic; it is the reflection of a broken covenant between Nigeria and its leaders. The wealth that should build the nation has become the currency of betrayal. Until the ruling class and their foreign accomplices are held accountable, Nigeria will remain a country of immense potential shackled by the greed of its own custodians.
Blaise, a journalist and PR professional writes from Lagos, can be reached via: [email protected]
Gov. Dauda Lawal commissions projects in Anka LGA, Commits to Sustainable Development
The Executive Governor of Zamfara State, Dr. Dauda Lawal, has reiterated his administration’s steadfast commitment to guiding Zamfara State towards sustainable development by inaugurating and initiating a series of pivotal projects in the Anka Local Government Area.
Among the key undertakings announced are the comprehensive reconstruction and modernization of the Emir of Anka’s palace, signaling a revitalization of traditional leadership; the initiation of work on the crucial Anka–Abbare Road, which is expected to significantly improve connectivity; and the construction of a new Local Government Secretariat.
Additionally, the projects encompass the establishment of dedicated offices for the Hisbah Commission and the Community Protection Guards, alongside the reconstruction of the Safe School in Anka, emphasizing the administration’s focus on enhancing educational infrastructure.
During the commissioning event, Governor Lawal highlighted that these projects are a fulfillment of commitments made during his campaign, aimed at transforming the local landscape by improving infrastructure, stimulating economic growth, bolstering public service efficiency, and enhancing the capacities of security agencies. He called for a collective effort from the community to ensure proper maintenance of these facilities, underscoring the shared responsibility in preserving public assets.
Governor Lawal shared that similar projects have also been inaugurated in Tsafe, with plans for upcoming projects in Kaura Namoda, Moriki, Bungudu, Bukkuyum, and Zurmi, all expected to be completed and inaugurated by the year’s end. This ambitious timeline reflects the administration’s urgency in addressing the development needs of various regions within the state.
In his remarks, the governor urged residents and local traditional institutions to collaborate closely in maintaining the newly commissioned structures and supporting the overarching objectives of his administration. “I stand here in Anka today to honor our commitments to the people of Anka Local Government and all of Zamfara State. The official opening of the new palace for the ‘Sarkin Zamfaran Anka’ and the Zamfara State Council of Chiefs is a significant milestone that wraps up today’s agenda,” he stated.
Governor Lawal emphasized the strategic importance of the Anka–Abbare Road, describing it as a critical artery that will not only enhance access to remote areas but also stimulate economic activities and generate multiplier effects throughout the local economy. He articulated the necessity of providing a conducive work environment for civil servants, affirming that the new local government secretariat and dedicated offices will significantly contribute to strengthening law and order within the state.
“Education is the cornerstone of any thriving society. Our focused initiatives are oriented towards fostering a safe, secure, and supportive environment for our students. I am also proud to announce the completion and commissioning of the reconstructed SAFE School Anka today,” he remarked, reaffirming the administration’s dedication to education.
The governor further noted that the commissioning of the Emir’s Palace serves to restore the historical prominence of traditional institutions, which he regards as pivotal custodians of the region’s culture and heritage. He underlined the administration’s awareness of the invaluable role that these institutions play in fostering the state’s growth and emphasized the necessity of aligning development projects with cultural values.
In conclusion, the governor mentioned that after the successful commissioning in Anka and Tsafe, future projects in Kaura Namoda and Moriki will follow suit, while those in Bungudu, Bukkuyum, and Zurmi remain on track for completion and official commissioning before the year concludes.
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GEN CHRISTOPHER GWABIN MUSA SUPPORT INITIATIVE HAILS GOVERNOR UBA SANI’S APPOINTMENT AS RENEWED HOPE AMBASSADOR
GEN CHRISTOPHER GWABIN MUSA SUPPORT INITIATIVE HAILS GOVERNOR UBA SANI’S APPOINTMENT AS RENEWED HOPE AMBASSADOR
The Gen Christopher Gwabin Musa Support Initiative (GCGMSI) has extended its warm congratulations to His Excellency, Mallam Uba Sani, the Executive Governor of Kaduna State, following his recent appointment as a Renewed Hope Ambassador and Deputy Director-General for Party Outreach, Engagement, and Mobilisation by the All Progressives Congress (APC).
This felicitation was formally conveyed in a statement signed by the Initiative’s Convener, Ibrahim Dahiru Danfulani, Sadaukin Garkuwan Keffi/Betara Biu, and disseminated to the press.
The statement highlighted that the Grand Patron of the GCGMSI, His Excellency General Christopher Gwabin Musa, OFR, Minister of Defence of the Federal Republic of Nigeria, received the news of the appointment with great pride but without surprise. According to the statement, General Musa expressed unwavering confidence in Governor Uba Sani’s proven capability and salient leadership qualities, affirming that the Governor is eminently equipped to deliver on every task entrusted to him.
The Grand Patron further extended profound appreciation to the President and Commander-in-Chief of the Armed Forces, His Excellency Asiwaju Bola Ahmed Tinubu, GCFR, for recognising and finding Governor Uba Sani worthy of this critical national assignment. The appointment, which takes effect immediately, was made by the President in his capacity as the leader of the APC, citing the Governor’s exceptional organisational abilities and strategic acumen.
In his new role, Governor Sani is tasked with working in close collaboration with the Director-General of the Renewed Hope Ambassadors and the party hierarchy, including the National Chairman of the APC. His primary mandate is to ensure harmony, inclusiveness, and strategic coordination across all levels of the party’s mobilization and engagement architecture, a vital function for advancing the political agenda.
Demonstrating its commitment to national service and effective governance, the GCGMSI, under the direct directive of its Grand Patron, General Musa, has officially mobilised its formidable structure. The Initiative has pledged the full deployment of its extensive network, seasoned personnel, and robust operational framework to assist and support Governor Uba Sani in the successful execution of his new responsibilities.
The Gen Christopher Gwabin Musa Support Initiative, renowned for its disciplined organisation, widespread grassroots penetration, and capacity for large-scale civic mobilisation, stands ready as a pivotal force. This move underscores the GCGMSI’s pivotal role as a key support system for national development initiatives and its unwavering dedication to fostering unity and progress under the Renewed Hope agenda.
Oyo 2027: Ajadi Says PDP Will Retain Power
…..Tasks PMS To Remain United, Peaceful
A leading People’s Democratic Party (PDP) governorship aspirant in Oyo State, Ambassador Olufemi Ajadi Oguntoyinbo, has urged the people of Oyo State to remain steadfast, saying they will continue to enjoy good governance because the PDP will produce the next governor in the 2027 general elections.
Ajadi, who made this known while addressing transport unions under the Park Management System (PMS) at their headquarters, New Garage, Ibadan, on Tuesday, urged the park managers to remain united and maintain the love and peace currently prevalent among them.
According to him, “My advice to the Park Managers and the commercial drivers in Oyo State is that they should continue the love and peaceful attitudes. They should remain united. They should not ‘scattelegs’.
“Don’t let anybody deceive you, remain steadfast. Let me assure you that our party, the PDP, will produce the next governor come 2027,” Ajadi said.
He said he came to the PMS headquarters to meet with transporters and park managers to inform them of his aspiration to serve the people of Oyo State as governor come 2027.
“Today I joined my people, the park managers in Oyo State, to familiarize myself with them and inform them of my intention to serve the people of Oyo State as the next governor by the Grace of God.”
On the plans for the transporters, Ajadi said he first wants to change the look of the City Cabs, which will be done in collaboration with the Park Management System.
He also plans to increase the number of Mass Transit buses and make them available in all locations of the State.
He said the Mass Transit buses will operate in partnership with the Park Managers.
Ajadi, who commended Governor Makinde on the newly established bus terminals in the State, said his government will ensure adequate usage of the facilities.age of the facilities.
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